Vermont Grants Betting Licenses to Three Sports Betting Operators
LISTEN TO THIS ARTICLE:The Vermont Department of Liquor and Lottery has selected DraftKings, FanDuel, and Fanatics Sportsbook to operate mobile sports betting platforms in the state.
The law governing mobile sports wagering in Vermont permits the regulators to approve up to five sportsbooks in the region.
When the group opened applications for licenses, it was reported that they also received five bids, aligning with the number of slots available. However, from the five companies that showed interest, the regulators have only approved three, leaving ESPN Bet and BetMGM out of the selection.
The regulators had not given any reason for this decision. Meanwhile, January 11 has also been announced as the official launch date for online sports betting in the state, which represents a delay of 10 days from the initial projected start date.
I first proposed Vermont legalize sports wagering several years ago, and it’s good to see it come to fruition. Vermonters and visitors alike will soon be able to access a regulated sports wagering marketplace, which will come with important consumer protections and generate revenue for the State.
Vermont-Operators Deal
The three operators are projected to yield an estimated $7 million in annual tax revenue through a revenue-sharing arrangement with the state that also involves an operator fee.
The request for proposal (RFP) for state operators stipulated a minimum revenue share of 20% while offering maximum points for a split directing 51% to Vermont. The state required operators to pay $500,000 upfront and then an additional $366,666 every year. However, this operator fee decreased as each operator gained approval, which could have been the reason why the regulators decided to only approve three applicants.
Vermont regulators are also implementing new measures that will promote responsible gambling practices in the state once the betting market fully launches.
Every year, the Department of Liquor and Lottery, working together with the Department of Mental Health, will give a report to the Legislature about how sports betting is affecting gambling problems in Vermont.
Operators will also be mandated to submit a responsible gaming plan to the state that details how they'll display materials about problem gambling, offer resources for bettors facing gambling issues, set player limits, and establish self-exclusion programs.
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